The African Domain Name Industry: Key Findings from the 2023 Study | Blog One

This blog is the first of a series focused on the 2023 Africa Domain Name Industry Study. The blogs contextualize and expand upon data and information gathered during the study.

 

The African Domain Name Industry: Key Findings From the 2023 Study

The 2023 Africa Domain Name Industry Study provides a comprehensive overview of the growth, challenges, and future potential of the domain name industry across the continent. It was commissioned by ICANN and conducted by PowerSoft Africa, in collaboration with the Coalition for Digital Africa. The study builds upon the baseline established in 2016, providing updated insights into the current state of Africa's domain name industry. This blog, the first of a series focusing on takeaways from the 2023 study, delves into the key findings and implications, highlighting the progress and opportunities within the African domain name ecosystem.

Africa's domain name industry is crucial for the continent’s digital transformation, significantly impacting economic and social development. The 2023 study examines the domain name ecosystem, focusing on domain name penetration, infrastructure improvements, Internet accessibility, and the role of Internet Exchange Points (IXPs). It also evaluates country-specific performance, economic impact, and the regulatory environment to provide a holistic view of the industry's growth and challenges.

 

Key Findings From the 2023 Study

Average Penetration of Domain Names

The study shows that while domain name penetration in Africa is steadily increasing, it remains below global averages. As of November 2023, just over 4.33 million domains were registered under African country code top-level domains (ccTLDs), with around 1.4 million registrations in generic top-level domains (gTLDs) by African entities. The number of registered domains is estimated at 3 domains per 1,000 people compared to the global average at 45 domains per 1,000 people. This represents significant growth, though there are notable regional variations, with countries like South Africa, Nigeria, and Kenya leading in domain name registrations.

 

Infrastructure Improvements and Growth

Significant improvements in Africa’s Internet infrastructure are driving the growth of the domain name industry. The development of backbone and local access infrastructure, including terrestrial and submarine fiber networks, has enhanced connectivity across the continent. The number of IXPs has increased, with 63 fully operational IXPs in 38 countries, up from 36 in 26 countries in 2016. Additionally, the growth in data centers is driving local content hosting and improving Internet performance.

 

Accessibility of Internet Services

Internet penetration in Africa has increased to 43 percent, from 29 percent in 2016. However, high Internet access costs remain a significant barrier, limiting usage and domain name registrations. Improving digital literacy and increasing the availability of local content is essential to overcoming these challenges. The study emphasizes the need for affordable Internet access to stimulate demand for domain names and online services.

 

Role of IXPs in the Ecosystem

IXPs are crucial for enhancing local Internet performance and supporting the domain name industry’s growth. The study highlights the positive impact of IXPs on reducing latency, improving speeds, and lowering costs. Successful IXP implementations in countries like Kenya and Nigeria demonstrate the benefits of local data exchange, contributing to the overall health of the Internet ecosystem.

 

Economic Impact of Domain Name Growth

The industry's growth boosts local digital economies by fostering entrepreneurship, supporting e-commerce, and creating jobs. Government policies and regulations play a crucial role in promoting a conducive environment for the industry's expansion. Economic growth also has an impact on domain name registration. The 2023 study underscores the economic benefits of increasing domain name registrations, highlighting the need for supportive frameworks to encourage further growth.

 

Technological and Regulatory Factors

Technological advancements and strong regulatory frameworks are important for the domain name industry’s sustained growth. The study recommends policy adjustments to address barriers such as high costs and limited infrastructure. Encouraging local content creation and improving digital literacy are also vital for driving demand and ensuring the industry's long-term success.

 

Future Outlook for the African Domain Name Industry

The study projects continued growth in both ccTLD and gTLD registrations, driven by increasing Internet penetration and digital awareness. Emerging markets within the continent present significant opportunities for expansion. However, challenges such as high costs and infrastructural limitations must be addressed to realize the full potential of the domain name industry in Africa.

 

Participate and Share Your Feedback

As we conclude the first blog of the 2023 Africa Domain Name Industry Study series, we invite you to share your thoughts and feedback. Engage with us on the Coalition for Digital Africa's social media channels, where you can join the conversation and stay updated on our latest posts about the study and our ongoing efforts to advance the Internet in Africa. Your participation is crucial in shaping the future of Africa's digital landscape.